Definition of Cardholder agreement:
Under the 1968 Truth in Lending Act (TILA), credit card providers are prohibited from making misleading statements about their offerings, and are required to clearly explain the terms and provisions of their credit cards in the cardholder agreement. As such, customers considering accepting a new credit card should carefully review their cardholder agreement in order to confirm that the actual provisions of the card are as advertised.
A document which lists the terms and conditions to credit card account holders. The agreement must include finance charges, fees and payment calculations, along with consumer rights and how payments are applied to outstanding balances. Most will include dispute resolution options, penalties and company rights.
A cardholder agreement is a legal document outlining the terms under which a credit card is offered to a customer. Among other provisions, the cardholder agreement states the annual percentage rate (APR) of the card, as well as how the card’s minimum payments are calculated.
How to use Cardholder agreement in a sentence?
- The cardholder agreement is the document specifying the exact provisions of a credit card.
- Due to consumer protection laws, cardholder agreements must be written in language that can be easily read and understood by the public.
- At times, a card’s advertisements might prove misleading relative to the full contents of their cardholder agreement.
Meaning of Cardholder agreement & Cardholder agreement Definition